Change Management Strategy

This document discusses the change management strategy of Fast Track courier company, focusing on its goals of implementing GPS and PDA devices on trucks and one person per truck policy. It analyzes the benefits, risks, and costs of the change, and provides a mitigation strategy and change management plan. The document also includes a list of resources and references.

BSBINN601 (AT-2)
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Contents
Change Management Strategy....................................................................................3
References...................................................................................................................12
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Change Management Strategy
Fast track is a courier company that delivers medium to large size packages in New
South Wales. This company is running from the last 15 years in Sydney. The
company currently wants to expand in the market. Their main aim is to increase its
market share by 7.5% (Hickman and Silva, 2018). The organization helps people in
comparing the two courier companies. The company is working on two vital goals
right now. Goals of the company are:-
Goal-1: Implementation of GPS and PDA devices on trucks.
Goal-2: Implementation of one person per truck policy.
Analysis
Identify Change Goals
If the company achieves these goals then the profit of the company will increase.
Goal A- Goal A is important for the company because it deals with the business past
like Operations and technologies. The organization wants to establish its courier
services in the areas where they are not yet established (Chang, 2016). The company
needs to be very strong in the technology part so that it can give tough competition to
the other companies which are already established in the market. Recognize the
performance of the employees and give them some bonuses and incentives so that
productivity increases and trust between employees and employers remain the same
(Thompson, Strickland and Gamble, 2015).
Goal B- Implementation of one person per truck policy plays a very vital role in using
human resources properly as the company can now deliver the packages on time.
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There will be no need to hire the drivers from outside if they implement this policy
because now they can send different drivers to different locations to deliver the
packages on time. PDA and GPS help in tracking the driver and the packages in an
emergency and because of this the employees of the company feel secure and enhance
(Hornstein, 2015). The company is also planning to change its gate from manual to
automatic, this will decrease the chances of injury and drivers will feel safe in the
company and work properly.
It is the work of General Manager to approve the change management strategy.
Who- truck drivers, local delivery staffs and labor who load and unload the packages
are the ones who get affected by the implementation of the Goal A i.e. using PDA and
GPS devices on trucks. But this will enhance the delivery of the packages.
How- Not everyone is able to face changes and the same goes with the company, if a
company is not ready to face changes then it is going to suffer a lot if the changes are
going to get implemented. Employees of the company will also suffer. Company is
planning to enhance the technology system by installing PDA and GPS on trucks but
they should also start some training session for the drivers as they are not at all aware
of the technology (Bradley, 2016). If the company provides some training sessions to
their employees then the change will be positive otherwise change will be negative
which leads to the failure in the change management strategy. The training sessions
will help the employees to enhance their knowledge and it will give benefit to the
company also.
When- These goals have to be implemented in the first quarter of the 2016 financial
year.
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The relation between change goals and Strategic goals of the company:-
The strategic goal of the company is to expand their services in rural areas. Moreover,
this is related to Goal A i.e. implementing PDA and GPS devices on trucks as this will
help the drivers to deliver packages on time and company will get time to give
services in the other areas where they are not established yet.
The other Strategic goal of the company is to enhance its market share by 7.5%.
Nowadays it is very common to know that enhancement in the market share needs
good technologies as well as good knowledge of the technologies (McGrath, and et
al., 2016). This will help the company to deliver small and large packages on time.
To maintain a good workforce is the main strategic goal of the company and this will
get accomplished if they install PDA and GPS on trucks and automatic gates instead
of manual ones as this will help the labors feel safe.
Cost-benefit analysis
Change requirements- the organization has already said that their cost of
implementing these changes without including new truck prices, technology and lift
gates is $25,000. This is the proper budget of the company and this will help the
company in increasing its market share by 7.5%.
Cost of changes- Every change needs some investment and this company is going
through a big change so this company also needs a big investment (Rosemann and
vom Brocke, 2015). The company has already announced its budget without including
new truck prices, technology and lift gates. If the company wants to expand its market
share then they have to recruit new employees for the free flow of the process, this
will help the company to deliver its packages on time (Amran, et al., 2016).
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Risks- There are many risks in changes as well as in investment. They are as follows:-
 This change requires very huge investment and if the change which the company is
planning gets fail then the company will face a huge loss because of which company
face the loss of money as well as human resources i.e. employees.
 Before it was seen that the employees of the company didn’t accept the change which
leads to the vast loss of the company.
 If the old employees cannot accept the change they sometimes left the company also.
Benefits of every change- Every change has its negative as well as positive aspects or
we can say that changes come with risks as well as benefits (Cândido and Santos,
2015). The benefits of these changes are:-
 If the company installs PDA and GPS on trucks then it will increase the technology of
the company.
 PDA and GPS will help the truck drivers to deliver the packages on time and before
time.
 The use of human resources will enhance when the company implements one person
per truck policy.
 The company is planning to buy new trucks because of which the company has to
recruit new employees and new minds will help in changing the situation of the
company.
 Labours of the company who has to lift heavy packages will become happy as the
company is implementing lift gates.
 The motivation level of the company’s employees will become and high and they will
feel happy and safe at the same time.
Assessment of the benefits against the cost and risk
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1- Implementation of PDA and GPS will help the company deliver its packages on
time but on the other hand drivers will not feel safe as they think that the company
doesn’t trust them. When in past company made some changes then the employees of
the company didn’t accept the changes and the company has to suffer a loss (Burlton,
2015). This change will make the company’s name in the market as enhancement in
the technology will help the company to face competition with the other companies.
2- One driver per truck policy will increase the salary of the drivers and the cost of lift
gate also comes under this. Because of this change drivers may not feel good as they
have to drive alone without any company, and sometimes drivers refuse to accept the
change. This change will help the company in many ways like they don’t have to hire
external drivers for the delivery of the packages and the most important thing is that
the chances of injury will decrease.
3-Buying new trucks- To buy new trucks the company has to be ready for the great
investment. If the company buys new trucks then the workload of the company will
also increase for which they have to hire some good employees. Because of this
change, the company will to the rural areas also and can compete with the other
courier companies.
Categorized changes:-
Structural changes- The change in the structure of the company like change in the
goal and objective of the company. Fast Track Courier Company is changing its
policies which come under structural changes. Change in the strategy of the company
is known as structural change (Zeng and Wang, 2015).
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Process change- Every process has some steps and modification of those steps comes
under process change of the organization (Zeng and Wang, 2015). Sometimes steps
may cut down and sometimes the company includes some new steps it depends upon
the strategy and the work.
Cultural change- It is the most difficult change which has to go through. The change
in the values of the organization comes under this change only.
The changes are feasible but it takes a lot of investment and change in the objectives
of the company. The company has to modify its process for the betterment of the
company but it will give huge success to the company in the market.
Risk analysis of the change
Implementation of GPS may give insecurity to the drivers that they are being tracked
by the company. Because, they don’t trust them and maybe they don’t accept the
change. To implement GPS on trucks, company has to hire a good employee who can
handle software of the system (Schindler and Hilborn, 2015).
Automatic gate installation- This change needs huge investment and sometimes
labours of the company think that they are being underestimated.
One driver per truck- The Company needs new trucks and new drivers after this
change.
Mitigation Strategy:-
A mitigation strategy is to identify the risks which occur during the change and work
on that so that the risk and threats which come under the change became less. This
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will be done if the company monitor all the process properly and the company has to
accept if something wrong happens and has to work accordingly with patience.
Change management plan:-
Change for the fast track company is very important as they are not doing well in the
market. The change sometimes is not accepted by the employees of the company so
fast track has to follow some steps and make a plan (Burlton, 2015). First, the
company has to think that what they want to change and then they have to make a
plan like how this change is going to implement in the company. The company has to
analyze themselves and then make some solutions for that and after this step, they
have to move further, then they have to write the steps and decide the time when they
want this change to be done. This management plan requires a meeting with the
employees so that they know about the change. Now the company has to identify the
challenges which are going to come and then they have to write a whole plan on paper
(Schindler and Hilborn, 2015).
Components in the plan:-
1-Stakeholder management
 Role of stakeholder- The work of the stakeholder will be to handle all the
structural changes.
 Commitment level- Commitment level of the stakeholders will be very high
because these types of changes include a lot of risks.
 Concerns- when the plan is ready and the approval of the General Manager is
also given then the company has to start working on that without any further delay
because it may lead to loss of the company.
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 Develop consultation methods for engaging identified stakeholders- There
are two methods for engaging identified stakeholders:
 Recognize key stakeholders and their intentions
 For engaging stakeholders develop a strategy
2- Communication plan
• Audience- Drivers and employees should be their target audience.
• Message- The organization should inform the employees about changes like gate
automation and GPS.
• When the communication will occur- Proper meetings should be organized to
communicate with the employees.
• How the message will be communicated- Company should inform about these
changes to the employees face to face.
• The person responsible- There should be one leader on every team.
3- Training plan:-All the employees of the company have to participate in the training
sessions. The training session should include the knowledge of the GPS and lift gate.
Training must be given before the implementation of the plan (Cândido and Santos,
2015). Need of training will occur when the employees do not have knowledge of
GPS system and lift gate. Training can be done in the classroom or on the job and the
head of the company should be responsible for the sessions.
Success Measurement:-Success can be measured by the profit of the company by
comparing last year’s data.
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How to report success:-Format of the report should be the company’s magazine so
that every employee of the company knows about the success of the organization.
This report should be published yearly and a copy of the report also given to the board
of directors.
List of resources
• A technical employee who can handle all the software and technology.
• The bonus should be introduced to the employees.
• Good training rooms.
• Motivational lecturers for the employees and for the drivers.
Changes are not easy it takes a lot of effort. The change includes many steps and
handling the whole staff at the same time during change is not an easy task. The
company should more focus on facts because they are going through changes and it
may have a negative impact or positive impact.
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References
Amran, A., Ooi, S.K., Wong, C.Y. and Hashim, F., 2016. Business strategy for
climate change: An ASEAN perspective. Corporate Social Responsibility and
Environmental Management, 23(4), pp.213-227.
Bradley, G. 2016. Benefit Realisation Management: A practical guide to achieving
benefits through change. Routledge.
Burlton, R.T., 2015. Delivering business strategy through process management. In
Handbook on Business Process Management 2 (pp. 45-78). Springer, Berlin,
Heidelberg.
Cândido, C.J. and Santos, S.P., 2015. Strategy implementation: What is the failure
rate?. Journal of Management & Organization, 21(2), pp.237-262.
Chang, J. F. 2016. Business process management systems: strategy and
implementation. Auerbach Publications.
Hickman, C. R., & Silva, M. A. 2018. Creating excellence: Managing corporate
culture, strategy, and change in the new age. Routledge.
Hornstein, H. A. 2015. The integration of project management and organizational
change management is now a necessity. International Journal of Project
Management, 33(2), 291-298.
McGrath, S. P., Taenzer, A. H., Karon, N., & Blike, G. 2016. Surveillance monitoring
management for general care units: strategy, design, and implementation. The Joint
Commission Journal on Quality and Patient Safety, 42(7), 293-302.
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Rosemann, M. and vom Brocke, J., 2015. The six core elements of business process
management. In Handbook on business process management 1 (pp. 105-122).
Springer, Berlin, Heidelberg.
Schindler, D.E. and Hilborn, R., 2015. Prediction, precaution, and policy under global
change. Science, 347(6225), pp.953-954.
Thompson, A., Strickland, A. J., & Gamble, J. 2015. Crafting and executing strategy:
Concepts and readings. McGraw-Hill Education.
Zeng, X. and Wang, J., 2015. A parallel hybrid electric vehicle energy management
strategy using stochastic model predictive control with road grade preview. IEEE
Transactions on Control Systems Technology, 23(6), pp.2416-2423.
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